TCS Announces Share Buyback Program Schedule

TCS Announces Share Buyback Program Schedule

VoM News Desk | November 28, 2023 | 06:56 PM IST | Breaking News | Follow on Google News

TCS Announces Share Buyback Program Schedule

TCS Announces Share Buyback Program Schedule

Tata Consultancy Services (TCS) has set the timeline for its share buyback program, which is slated to open on December 1 and close on December 7. The buyback offers an opportunity for investors to sell their shares back to the company.

Key Details of the Buyback Program

• Buyback Price: TCS has set a buyback price of ₹4,150 per share, which is a 20% premium over the closing price of ₹3,457.60 on the BSE as of the previous Friday.
• Entitlement Ratio for Small Shareholders: Small shareholders, those with investments less than ₹2 lakh, have an entitlement ratio of 1 equity share for every 6 shares held as of the record date, November 25.
• Entitlement Ratio for Other Shareholders: Other qualifying shareholders have an entitlement ratio of 2 shares for every 209 shares held.
• Impact on EPS and Net Worth: The buyback is expected to increase TCS’s EPS from ₹58.52 to ₹59.18 on a standalone basis and the net worth from 49.89% to 62.56%.
• Promoters’ Participation: Tata Sons and Tata Investment Corporation are expected to participate in the buyback, potentially tendering a combined maximum of 2,96,15,048 equity shares.
• Total Shares in Buyback: The buyback encompasses 4,09,63,855 shares in total.

Funding and Company Statement

• TCS plans to fund the buyback through existing surplus funds and/or internal accruals.
• The company has confirmed this buyback plan in its exchange filing, stating the decision to buy back up to 4,09,63,855 fully paid-up equity shares for an aggregate amount not exceeding ₹17,000 crore.

This buyback program not only offers a premium to current shareholders but also potentially enhances the value for remaining shareholders by increasing the EPS and net worth of the company. It represents an opportunity for investors, especially small shareholders, to participate actively in the company’s financial decisions.

VoM News Desk

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